Exhibit 1 Exhibit 2 UofU Inc. Statement of Earnings May 31, 2023 2023 2022 2021 Revenue Cost of Goods Sold Gross Margin Expenses: Other Expenses Net Income $950,000600,000$350,000 $275,000$75,000 $825,000575,000$250,000$488,000 $44,600$43,000 A recent graduate from ACCT 1510 has given you an opportunity to determine what the changes were from 2022 to 2023 for UofU Inc. Provided is the statement of financial position and Statement of Earning as of May 31, 2023, with a comparative of 2022 (Exhibit 1 and 2). and prepare a Statement of Cash Flows using the indirect method. The company is a private enterprise and chooses to follow ASPE. You will also need to evaluate the results from the Statement of Cash Flows, and summarize the changes that occurred. In addition, you will need to calculate the following ratios: Current Ratio Debt to Equity Ratio Accounts Receivable Turnover Ratio Inventory Turnover Ratio ROE Additional Data: 1. Cash Dividends of $10,000 were declared and paid. 2. Net Income for 2023 was $75,000. 3. Depreciation expense of $25,000 4. Long-term investments had a value of $45,000 and were sold for cash for a gain of $10,000. Additional long-term investments of $35,000 were purchased for cash. 5. Principal payment of $47,000 on long term debt 6. Shares sold for $50,000 cash. 7. Equipment with a cost of $25,000 and accumulated depreciation of $23,000 was sold for $14,000 cash. New Equipment was purchased for $35,000 cash